New Delhi, Feb. 5 -- India has taken the first step to develop an AI chip from the ground-up to substitute Nvidia's powerful processors, which have shaken up the global tech landscape and re-established the US's outsized dominance in the crucial sector.

Work on developing the framework for the chip to power artificial intelligence systems is under way, and an official announcement is expected later this year, said three senior officials aware of the development. The government has set a tentative timeline of 2027 to make the chips at a domestic chip fabrication plant, they said on the condition of anonymity.

The ministry of electronics and information technology (Meity) has partnered with the Centre for Development of Advanced Computing...